AUDIT STEP EXCEPTION WP REF Select a sample of 10 customers and establish whether (Preferably 5 big and 5 small): 1) Is there a customer file for all debtors customers. - -is there a fully completed and signed credit application on file. - is there copies of the company’s registration documents. - is there a signed credit agreement/ in place. - is credit properly authorised (signed of by management) - is there a letter of authorisation (resolution) authorising the signatory to bind the company. - is there a copy of suretyship on hand. - has a reference check been performed? - is customer correspondence kept on file. - is customer information updated regularly (check for mail returned undelivered) - is there a company of the company’s latest financials on file. - in the instances of assets being ceded as guarantee, has a landlord’s waiver being send to the landlord? 2) Draw a debtors’ age analysis on arrival and thereafter at least every second day. - check that customers adhere to agreed terms and limits - monitor all amounts overdue especially large amounts. - ensure that amounts 90days and over are followed up, i.e reminders are sent out to customers. - letters of final demand are sent via registered mail.(scrutinise list of registered mail) - all customers handed over to attorneys for collection are flagged and inactive. - check customers method of payment and check for customers with a history of RD cheques ...